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Originally Posted by thydere
But is my understanding of your post correct in that msreader (.lit) books sold in Online ebook Stores are not DRM protected? Wouldn't that mean that they can be easily converted to any format (including mobipocket) since they are just plain html and image files with an ODF descriptor bundled using a compression algorithm similar to mscabinet?
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Multi-format e-books, e.g. from Baen or Fictionwise, typically include both LIT and PRC without DRM, but many new titles will only be sold for each format separately and these have DRM. Fictionwise also sells DRMed e-books, and their FAQ
About MultiFormat & Secure Formats is a good introduction.
It is easy to strip the DRM from Secure LIT e-books (at least under Windows). Once you have a DRM-free LIT e-book, as you say, it is easy to convert it to other formats because it us just an OEB e-book (html, images and an OPF metadata file).